Know how the authors of your textbook define economic growth.
an annual increase in the gross domestic product (GDP) or monetary value of all goods and services produced in a nation each year
Understand the difference between fiscal and monetary policy.
fiscal: all govt actions having to do with spending and taxes
monetary: Fed policies that affect how much money is available to businesses an individuals frm banks and how much it costs
Know how the Federal Reserve Board controls the economy.
responsible for deciding monetary policies that dampen inflation and provide stable prices, usually by central bank management of interest rates
When does the government increase their overall spending?
when the economy is stagnant or declining
What makes America's tax system unique?
it is uniquely complex
few people can understand it and their services are mainly available to those who can afford it
What is a budget deficit?
the amount by which annual govt expenditures exceed revenues
Describe the two types of welfare state programs in the US.
TANF replaced AFDC
states use block grants to give both direct cash assistance to families and money for child care, education and training to help recipients enter paid employment
Compare the costs of social insurance and means-tested programs.
social insurance represents the largest single portion of the federal budget
means-tested are much smaller
How is Social Security funded?
funded by a payroll tax on employees and employers under the Federal Insurance Contributions Act (FICA)
What is Medicare?
Federal health insurance program for the elderly and the disabled
Temporary Assistance to Needy Families
program that provides income and services to many poor families
has benefit time limits and work requirement
How are food stamp benefit levels and Medicaid eligibility rules set?
food stamp benefit levels are set by the individual states under general federal guidelines and states vary substantially in their generosity
Medicaid eligibility are for people who are defined as "medically indigent" (anyone falling at or under 133 percent of the federal poverty line, including childless adults or who receive food stamp or TANF benefits